1. INDIAN INDUSTRY PERSPECTIVE ON PHASE DOWN OF HFC S REFRIGERANT GAS MANUFACTURERS ASSOCIATION (REGMA) INDO-US WORKSHOP ON HFCs 18 th February, 2011

2.  Industry Overview  Compliance with Montreal Protocol  Issues faced by Indian Industry  HCFC Phase out – The Challenges  HFC Phase-Down Proposal- The Concerns  Conclusion & Way Forward Contents:

3. Industry Overview  Fluorocarbon refrigerants being produced in India since last 45 years  India has 5 HCFC-22 plants  All HCFC-22run by public limited, listed companies  All 5 plants plants have CDM registered projects for incineration of HFC-23  No HFC-23 emissions – all HFC-23 emissions in India being destroyed under the Kyoto Protocol of the UNFCCC  Presently one HFC-134a production facility operational

4. Compliance with Montreal Protocol  Indian production sector has been proactive in ODS phase-out – complied with all international obligations – and more  Halon production phased out much ahead of schedule – first Halon facility closed down globally was Indian  CTC production phased out as per international commitments  CFC production phased out ahead of schedule  HCFC production capacity for emissive use frozen since 2000 – the only A5 Party to do so

5. Issues faced by Indian industry  Technology transfer for production sector not available though promised under Montreal Protocol  Compensation for phase-out not in accordance with economic and technical assessments – fell short of “incremental costs”  Delay in receipt of compensation

6. HCFC phase-out – the challenges  In 2007, HCFC-22 phase-out and accelerated phase- out schedule was agreed upon, based on HFCs being readily available as viable substitutes  Therefore, present proposal for HFC phase-down challenges the core assumption behind accelerated HCFC-22 phase-out  Lack of clarity on other (non-HFC) substitutes for HCFC-22 Contd…

7. HCFC phase-out – the challenges  Funding mechanism for accelerated phase-out of HCFC production sector still not in place – pending for more than 3 years  Concerns about funding not being based on technological and economic assessments

8. HFC phase-down proposal – the concerns  HFCs are greenhouse gases, not ozone depleting substances  Low GWP substitutes not available for most applications  Some low GWP substitutes are in early developmental stage – concerns about cost, technology, long term reliability, flammability, etc  A robust and legally binding technology transfer mechanism needs to be built Contd…

9. HFC phase-down proposal – the concerns  Funding mechanism and guidelines need to be pronounced clearly and transparently – to be based on technical and economic assessments  All HFC-23 emissions in India already being destroyed under the Kyoto Protocol of the UNFCCC  Possibility of two changeovers in a short span of time – associated costs and production disruptions – not affordable by a country like India

10. Conclusions – and way forward  Detailed studies required on HFCs  Legal issues – whether HFC phase-down can be considered under the Montreal Protocol  Technical issues - assess and evaluate long term low GWP substitutes for all applications  Economic issues - assess costs associated with multiple change- over  Stipulate clear and transparent guidelines for funding mechanism, based on technical and economic assessments  Create a robust and legally binding mechanism for technology transfer – latest technology should be available well in time, funded under a suitable funding mechanism Contd…

11. Conclusions – and way forward  Provide sufficient time lag between developed and developing countries for baseline and phase-down  Phase-down to be paced out with availability of technology and finance  All HFC-23 emissions in India are already being controlled under the Kyoto Protocol of the UNFCCC Contd…

12. Conclusions – and way forward Suggested way forward  Continue interaction at Industry and Government levels to deliberate on the key issues to work out a suitable framework and timeline for phase down of HFCs

13. Thank You